Onmyoji and NewGhost mobile were the main drivers behind the year-over-year growth in quarterly revenues. Additionally, mobile games such as Westward Journey Mobile, Land of Glory, Heroes of Tang Dynasty mobile, Demon Seals, and Tianxia mobile continued to gain traction with new content and expansion packs. In addition, NetEase's flagship PC game Fantasy Westward Journey Online and mobile game Invincible maintained their strong position and achieved record revenues in the second quarter.

During Netease's annual game press conference in May of this year, plans for upgrading seven major games and testing for six highly anticipated games were announced. The Company also showcased previews of 13 new mobile games, announced an exclusive licensing agreement and rolled out the first NetEase Games membership platform.

On August 8, 2017, the Company began open beta testing of Minecraft, its exclusive license game and one of the most popular games in the world. NetEase Games has adopted player-friendly free testing and made several localized upgrades in key areas such as social interaction and group play.

Ethan Wang, Vice President of NetEase commented that the Company maintains an opportunistic approach to acquisitions and investment in foreign studios in order to further diversify its overseas revenues. NetEase Games will continue to apply the same high quality and localized game standards to international markets.

Onmyoji, a successful overseas game was rated by Facebook as the best mobile game in 2016. The game made its debut in Korea on August 1, 2017 and ranked among the top selling games in the country. Other NetEase games such as Crusaders of Light, Immortal Conquest and Twilight Pioneers were also rolled out to players around the world.

The Company plans to increase its investment in third party and casual games to continue to cater to evolving user demands. Leveraging on its strong R&D capabilities, NetEase Games will continue to be a leading player in the online game industry in China and across the world.

About NetEase, Inc.

NetEase, Inc. (NASDAQ: NTES) is a leading internet technology company in China. Dedicated to providing online services centered around content, community, communication and commerce, NetEase develops and operates some of China's most popular PC-client and mobile games, advertising services, e-mail services and e-commerce platforms. In partnership with Blizzard Entertainment, Mojang AB (a Microsoft subsidiary) and other global game developers, NetEase also operates some of the most popular international online games in China. For more information, please visit: http://ir.netease.com